Nevada Geothermal Power Reports Results for the year ended June 30, 2012

VANCOUVER, Oct. 26, 2012 /PRNewswire/ - Nevada Geothermal Power Inc. ("NGP" or "the Company") (TSX.V: NGP) today announced results for the year ended June 30, 2012. The
Consolidated Financial Statements and Management's Discussion and
Analysis (MD&A) are available at www.sedar.com and on the Company's website at http://www.nevadageothermal.com.

For the year ended

(millions of US $ unless stated otherwise)

June 30, 2012

June 30, 2011

Variance

%

Net loss from continuing operations

$

(6.7)

$

(5.4)

$

(1.3)

(24%)

Results of discontinued operations

Operating (loss) profit

(36.7)

14.3

(51.0)

(357%)

Finance costs

(16.7)

(17.1)

0.4

2%

Net loss: operations being disposed of

(53.4)

(2.8)

(50.6)

(1807%)

Effect of services to operations being disposed of

1.1

1.1

-

-

Total loss from discontinued operations

(52.3)

(1.7)

(50.6)

(2976%)

Total net loss

(59.0)

(7.2)

(51.8)

(719%)

Net loss per share (basic and diluted) ($)

(0.48)

(0.06)

(0.42)

(700%)

Cash generated from operating activities

8.8

12.8

(4.0)

(31%)

As at June30, 2012

As at June30, 2011

Variance

%

Cash & cash equivalents

$

2.1

$

9.5

$

(7.4)

(78%)

Total assets

84.8

148.1

(63.3)

(43%)

Total liabilities

159.7

163.8

(4.1)

(3%)

NGP is a geothermal energy company, focused on developing and generating
clean, sustainable electrical power from geothermal resources in the
United States. The Company developed and constructed the Faulkner 1
geothermal power plant, at Blue Mountain, which it currently operates.
In addition, the Company holds leases on other properties in various
stages of development: two in Nevada, one in California's Imperial
Valley and a 50% interest in a joint venture development with Ormat
Nevada Inc. ("Ormat") at the Crump Geyser property in Oregon.

The Company's subsidiary, NGP Blue Mountain Holdco LLC ("BM Holdo")
breached the debt service coverage covenant under its loan from EIG
Global Energy Partners ("EIG") on December 31, 2011. BM Holdco has also
been unable to make the full minimum interest payments on the loan
since January 2012. During the year, the Company employed a Financial
Advisor to assist in determining strategic alternatives in the
restructuring of debt and in the recapitalization of the Company. This
process was concluded without success. During June 2012, the Company
determined that the solution preferred by both EIG and the Company is
to work cooperatively to transfer NGP's ownership interest in BM Holdco
and the Blue Mountain project (including the long-term liabilities
owing to John Hancock Life Insurance Company ("John Hancock") and EIG )
to EIG in accordance with their rights under the note purchase
agreement. NGP will continue as operator of the plant for a period of
time to ensure a smooth transition. NGP and EIG are currently
concluding negotiations.

The John Hancock loan requires the Company to obtain an independent
forecast of the performance of the Blue Mountain geothermal resource on
an annual basis. These resource forecasts have in the past indicated
that power production will gradually decline over time, and the Company
has undertaken a number of projects in order to reduce the extent of
the decline. During September 2012, the Company received an updated
resource forecast in respect of Blue Mountain. This forecast predicts
a much faster decline in resource temperatures than had previously been
forecasted. Accordingly the Company recognized an impairment loss of
$44.4 million in respect of the Blue Mountain assets, which is included
in the results of discontinued operations above. The Company is
working with its advisors to confirm the results of the report. During
October 2012, John Hancock advised the Company that it will not allow
further distributions from NGP Blue Mountain I LLC, which owns the Blue
Mountain Power plant, until matters are resolved.

The Company continues to maintain its resource property assets at Crump
Geyser (with Ormat as a partner), New Truckhaven, Pumpernickel Valley
and North Valley. The Company has not renewed leases on the East
Brawley, South Brawley, and Edna projects. The Company has taken steps
to reduce its costs, and is exploring all available strategic
alternatives.

On August 10, 2012, the Company and Ormat reached an agreement to extend
the time period in which Ormat is required to complete the initial
development spending of $15 million to maintain their interest in the
project. In return the total cash instalments payable under the
agreement were increased from $2.5 million to $3.0 million. A payment
of $500,000 was received during August 2012, and a further payment of
$500,000 is due on October 29, 2012. The final payment of $1.7 million
and completion of the $15 million work commitment is due on June 30,
2014. Ormat has the right to early termination of the agreement, in
which case the $1.7 million is no longer payable and 100% of the
project reverts to NGP.

During the past year the Company focused project work on the New
Truckhaven property. The Company received an independent resource
assessment from Mannvit HF, an Icelandic engineering and consulting
company based in Reykjavik, Iceland, which confirmed the existence of
an Indicated Geothermal Resource of 35 - 60 MW (net) recoverable
electric energy, suitable for development of a binary power plant.
Management plans to advance the development of this project during
2013.

The Company will consider selling one or more of its development
projects to raise additional funds. Management also expects that the
contemplated Blue Mountain equity transfer and debt relief described
above will improve the financial condition of the continuing operations
and make it easier for the Company to advance its plans.

About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an experienced renewable energy producer
focusing on the development of CLEAN electrical power from high
temperature geothermal resources in the United States. NGP currently
owns a 100% leasehold interest in several properties in Nevada and
California, and a 50% interest in Crump Geyser, in Oregon. These properties are at different levels of exploration
and development.

This Press Release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
We have tried, whenever possible, to identify these forward-looking
statements using words such as "anticipates," "believes," "estimates,"
"expects," "plans," "intends," "potential" and similar expressions.
These statements reflect our current belief and are based upon
currently available information. Accordingly, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which could cause the Company's actual results, performance or
achievements to differ materially from those expressed in or implied by
such statements. We undertake no obligation to update or advise in the
event of any change, addition, or alteration to the information catered
in this Press Release including such forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.